Best FD Interest Rates for 5 Year Tenure

Do you want to save your money but are unsure which investment tool to use? Well, the option to invest in fixed deposits is always available to investors looking for a safe option. One of the most popular FD investment tenures among depositors is 5 years, which usually comes with a tax-saving feature. It helps you get high returns on your investment and is tax-saving. 

Let us dive deeper to know the best FD rates for 5 years offered by different banks.

About FD

FDs or fixed deposits are a secure investment choice in which you deposit a particular amount of money with the bank or Non-Banking Financial Company (NBFC), for a set duration of time and at an attractive interest rate. This is a safe investment option for cautious investors seeking a steady income stream.

The rate of interest applicable on your FDs is higher than what you get in savings accounts. This is mostly because your money remains fixed for a specific tenure, and you do not have the flexibility to withdraw or deposit money whenever you want.

Financial institutions offer you FDs with flexible tenure of 7 days to 10 years. Individuals wanting to invest money for 5 years mostly opt for tax-saving FD schemes. You can get the best 5-year fixed deposit rates from both small and large finance banks, helping you grow your money significantly.

Some key benefits of investing in FDs are:

  • You can take a loan against your fixed deposits.
  • Additional interest rate benefits for senior citizens.
  • Guaranteed returns on your deposit.
  • Simple investment process.
  • Grow money for a fixed period to use in different financial requirements.
  • Competitive and attractive interest rates are available.

Best FD Interest Rates for 5-Year Tenure – 2023

In this section, we will guide you through the best FD for 5 years with their interest rates for both general and senior citizens.

1. Bank FD Interest Rate for 5-Year

Here is a list of well-known banks in India offering the best FD interest rates for 5 years.

BankGeneral CitizenSenior Citizen
State Bank of India6.50% p.a.7.50% p.a.
HDFC Bank7.00% p.a.7.75% p.a.
Axis Bank7.00% p.a.7.75% p.a.
ICICI Bank7.00% p.a.7.50% p.a.
Punjab National Bank6.50% p.a.7.00% p.a.
Bank of Baroda6.50% p.a.7.15% p.a.
Canara Bank6.70% p.a.7.20% p.a.
Central Bank of India6.25% p.a.6.75% p.a.
Indusind Bank7.25% p.a.8.00% p.a.
Union Bank of India6.50% p.a.7.00% p.a.
Bandhan Bank5.85% p.a.6.60% p.a.
Kotak Mahindra Bank Ltd.6.20% p.a.6.70% p.a.
DCB Bank7.40% p.a.7.90% p.a.
IDFC First Bank7.00% p.a.7.50% p.a.
IDBI Bank 6.255 p.a.6.75% p.a.
Note: The interest rate given for each bank is for fixed deposits less than ₹2 crores.

2. Small Finance Bank FD Interest Rate

Here is a list of small finance banks offering the best FD rates for 5 years for both general citizens and senior citizens. 

BankGeneral CitizenSenior Citizen
Ujjivan Small Finance Bank 7.20% p.a.7.70% p.a.
Unity Small Finance Bank 7.65% p.a.8.15% p.a.
Utkarsh Small Finance Bank7.50% p.a.8.10% p.a.
Suryoday Small Finance Bank8.25% p.a.8.75% p.a.
Shriram Finance Transport Bank8.50% p.a.9.00% p.a.
North East Small Finance Bank6.25% p.a.7.00% p.a.
Jana Small Finance Bank7.25% p.a.7.75% p.a.
AU Small Finance Bank7.25% p.a.7.75% p.a.
Capital Small Finance Bank Limited7.10% p.a.7.60% p.a.
ESAF Small Finance Bank6.25% p.a.6.75% p.a.
Note: The interest rate given for each bank is for fixed deposits less than ₹2 crores.


Overall, FD investment is a secure option for people seeking to get assured returns on their money. Depositing money for 5 years can help you save money for a long tenure as well as save taxes. Always remember to compare the best FD rates for 5 years offered by different large and small banks to plan your finances and returns in a better way.


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